There is growing empirical evidence that risk preferences change based on financial market conditions. This paper explores individual predictors of time varying risk aversion among participants in U.S. defined contribution plans using a unique dataset with daily responses to a risk tolerance...

This paper analyzes the effect of framing on the stated demand for longevity annuities. We test whether longevity income framed as “insurance” is more attractive than longevity income framed as an “annuity,” since longevity income is consumption protection. In a sample of 1,425...

We investigate whether myopic behavior influences respondents' risk perception of future stock market returns. Using the 2012 wave of the Health and Retirement Study, we find that investors who are myopic (follow the stock market “very closely” or “somewhat closely”) are more likely to...

This paper analyzes the effect equity values and age have on the risk aversion of participants in U.S. defined contribution plans using a unique dataset with daily responses to a risk tolerance questionnaire. We find that older investors are more risk averse compared to younger cohorts when...

The literature on risk tolerance overwhelmingly justifies the use of questionnaires based on validity and reliability or psychometric testing, but there has been little research examining the relation between questions and actual investor portfolio behavior. This study examines risk tolerance...